SEC News Digest

COMMISSION ANNOUNCEMENTS

Fee Rate Advisory #3 for Fiscal Year 2011

The President and Congress are expected to extend the continuing resolution funding the Securities and Exchange Commission through Dec. 18, 2010. During this period, fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g) and 31 of the Securities Exchange Act of 1934 will remain at their current rates.

As previously announced, 30 days after the date of enactment of the Commission's regular fiscal year 2011 appropriation, the Section 31 fee rate applicable to securities transactions on the exchanges and in the over-the-counter markets will increase from their current rate of $16.90 per million dollars to a new rate of $19.20 per million dollars. The assessment on security futures transactions under Section 31(d) will remain unchanged at $0.0042 for each round turn transaction.

In addition, five days after the date of enactment of the Commission's regular appropriation, the Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rate applicable to proxy solicitations and statements in corporate control transactions will increase from their current rate of $71.30 per million dollars to a new rate of $116.10 per million dollars.

The Division of Trading and Markets Office of Interpretation and Guidance is available for questions relating to Section 31, at (202) 551-5777 or at tradingandmarkets@sec.gov. A copy of the Commission's April 29, 2010, order regarding fee rates for fiscal year 2011 is available at http://www.sec.gov/rules/other/2010/33-9122.pdf.

The Commission will issue further notices as appropriate to keep the public informed of developments relating to enactment of the Commission's regular appropriation and the effective dates for the above fee rate changes. These notices will be posted at the SEC's Web site at http://www.sec.gov. (Press Rel. 2010-236)

Change in the Meeting: Time Change

The Closed Meeting scheduled for Thursday, Dec. 9, 2010 at 2:00 p.m. has been changed to Thursday, Dec. 9, 2010 at 1:00 p.m.

RULES AND RELATED MATTERS

Investment Adviser Registration Depository Filing Fees

A notice has been issued giving interested persons until Dec. 21, 2010, to request a hearing on an order setting the Investment Adviser Registration Depository (IARD) annual filing fees and initial registration fees for investment advisers registered or registering with the Commission. These fees will be due in connection with applications for registration and annual updating amendments filed on or after Jan. 1, 2011. (Rel. IA-3119)

ENFORCEMENT PROCEEDINGS

Securities and Exchange Commission Orders Hearing on Registration Revocation Against Eight Public Companies for Failure to Make Required Periodic Filings

On December 3, the Commission instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registrations of each class of the securities of eight companies for failure to make required periodic filings with the Commission:

• Springfield Co., Inc.
• SRR Mercantile, Inc.
• Standard Mining Corp.
• Stewart Foods, Inc.
• Strathclair Ventures, Ltd. (n/k/a SilverCrest Mines, Inc.) (STVZF)
• Sunlite, Inc.
• Syndicated Food Service International, Inc. (SYFSQ)
• Syspower Multimedia Industries, Inc.

In this Order, the Division of Enforcement (Division) alleges that the eight issuers are delinquent in their required periodic filings with the Commission.

In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the Administrative Law Judge will hear evidence from the Division and the Respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 or 13a-16 thereunder, are true. The Administrative Law Judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these Respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-63429; File No. 3-14150)

Delinquent Filers' Stock Registrations Revoked

The registrations of the registered securities of Enclaves Group, Inc., Energytec, Inc., Entrada Networks, Inc., Equisure, Inc., and Equus Gaming Company L.P. have been revoked. Each had repeatedly failed to file required annual and quarterly reports with the Securities and Exchange Commission. Thus, each violated a crucial provision of the federal securities laws that requires public corporations to publicly disclose current, accurate financial information so that investors may make informed decisions. The revocations were ordered in an administrative proceeding before an administrative law judge. (Rel. 34-63421; File No. 3-14119)

Russian Entity and Individual Agree to Pay $1.33 Million to Settle Market Manipulation Charges

The Securities and Exchange Commission announced today that BroCo Investments, Inc. and Valery Maltsev, both of Russia, have agreed to settle the Commission's pending civil action against them. The Commission's amended complaint, filed today in the United States District Court for the Southern District of New York, alleges that BroCo and Maltsev controlled an omnibus account that was used to turn $2,080 into $627,633 in a six-month period by repeatedly buying and selling securities contemporaneously with unauthorized trades that had been placed compromised accounts at various U.S. broker-dealers. The Commission's amended complaint further alleges that BroCo and Maltsev violated the antifraud provisions of the federal securities laws by virtue of having ignored several red flags that should have alerted them to the fraudulent activity, including the massive short term trading gains being realized in the account, internal memoranda that identified the suspicious trading, and the constant repatriation of funds from their account.

Under today's announced settlement, BroCo, without admitting or denying the allegations in the Commission's amended complaint, consented to the entry of a judgment requiring BroCo to disgorge $627,633 in ill-gotten gains plus prejudgment interest thereon, requiring BroCo to pay a $627,633 penalty, and enjoining BroCo from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Maltsev, without admitting or denying the allegations in the Commission's amended complaint, consented to the entry of a judgment requiring him to pay a $50,000 penalty and enjoining him from future violations of Sections 17(a)(2) and (3) of the Securities Act of 1933. The proposed settlements are subject to approval by the U.S. District Court for the Southern District of New York.

The Commission acknowledges the assistance of FINRA and NYSE in this matter. [SEC v. BroCo Investments, Inc. and Valery Maltsev, Civil Action No. 10-cv-2217 (S.D.N.Y.)] (LR-21760)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2010-165) relating to transaction billing and other clarifying amendments has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of December 6. (Rel. 34-63406)

A proposed rule change filed by NASDAQ OMX PHLX modifying fees for NASDAQ OMX PSX (SR-Phlx-2010-169) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of December 6. (Rel. 34-63411)

A proposed rule change filed by NYSE Amex to amend the exchange price list with respect to Nasdaq securities traded pursuant to unlisted trading privileges (SR-NYSEAmex-2010-112) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of December 6. (Rel. 34-63413)

A proposed rule change filed by the NASDAQ Stock Market clarifying the exclusion of partial trading days from certain calculations within the Investor Support Program (SR-NASDAQ-2010-153) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of December 6. (Rel. 34-63414)

A proposed rule change filed by The Depository Trust Company (SR-DTC-2010-16) to extend the end of day cutoff time for processing to the Federal Reserve and to reflect other changes requested by the Federal Reserve has become immediately effective under Section 19(b)(3)(A)(iii) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of December 6. (Rel. 34-63415)

National Securities Clearing Corporation filed a proposed rule change (SR-NSCC-2010-17), which became effective upon filing pursuant to Section 19(b)(3)(A) of the Exchange Act, to discontinue the Cost Basis Reporting Service. Publication is expected in the Federal Register during the week of December 6. (Rel. 34-63417)

Proposed Rule Change

NASDAQ OMX BX filed a proposed rule change (SR-BX-2010-083) relating to the Price Improvement Period to permit an Initiating Participant to designate a PIP Surrender Quantity. Publication is expected in the Federal Register during the week of December 6. (Rel. 34-63416)

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http://www.sec.gov/news/digest/2010/dig120310.htm